•  The prevailing USD selling bias helped gain positive traction for the fourth straight session.
   •  Increasing bets that the Fed might be forced to cut rates remained supportive of the move.

Gold continued scaling higher through the early European session on Tuesday and touched over three-month tops, around the $1329-30 region in the last hour.

The precious metal added to its recent strong gains beyond the key $1300 psychological mark and traded with a bullish bias for the fourth consecutive session amid heightened global trade tension.

Meanwhile, the recent trade war jitters continued fueling fears of a sharp economic slowdown and now seemed to have forced investors to start pricing in a possible Fed rate cut by the end of this year. 

The same was reinforced by St. Louis Fed President James Bullard's overnight comments that a rate cut may be warranted soon, provided an additional boost to the non-yielding yellow metal.

Adding to this, broad-based US Dollar weakness further underpinned the dollar-denominated commodity and remained supportive of the ongoing move to the highest level since late-February.

Bulls seemed rather unaffected by some signs of stability in the global equity markets, which tends to dent the precious metal's safe-haven status, and even shrugged off a goodish bounce in the US bond yields.

Moving ahead, Tuesday's scheduled speech by the Fed Chair Jerome Powell will be looked upon for the central bank's near-term monetary policy outlook and might eventually provide a fresh directional impetus.

Technical levels to watch

XAU/USD

Overview
Today last price 1328.2
Today Daily Change 3.44
Today Daily Change % 0.26
Today daily open 1324.76
 
Trends
Daily SMA20 1287.52
Daily SMA50 1287.79
Daily SMA100 1296.95
Daily SMA200 1262.76
Levels
Previous Daily High 1328
Previous Daily Low 1306.18
Previous Weekly High 1306.9
Previous Weekly Low 1275.1
Previous Monthly High 1306.9
Previous Monthly Low 1266.35
Daily Fibonacci 38.2% 1319.66
Daily Fibonacci 61.8% 1314.51
Daily Pivot Point S1 1311.29
Daily Pivot Point S2 1297.82
Daily Pivot Point S3 1289.46
Daily Pivot Point R1 1333.11
Daily Pivot Point R2 1341.47
Daily Pivot Point R3 1354.94

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD loses recovery momentum after testing 1.0200

EUR/USD loses recovery momentum after testing 1.0200

EUR/USD has lost its momentum after having climbed toward 1.0200 during the European trading hours on Wednesday. As investors wait for the FOMC to release the minutes of its July meeting, the dollar consolidates its daily gains, allowing the pair to hold above 1.0150.

EUR/USD News

GBP/USD retreats to 1.2050 area ahead of FOMC Minutes

GBP/USD retreats to 1.2050 area ahead of FOMC Minutes

GBP/USD has reversed its direction after having recovered toward 1.2100 in the second half of the day on Wednesday and retreated toward 1.2050. The risk-averse market environment makes it difficult for the pair to gain traction as focus shifts to FOMC Minutes.

GBP/USD News

Gold pushes lower toward $1,760 as US yields extend rally

Gold pushes lower toward $1,760 as US yields extend rally

Gold continues to decline toward $1,760 during the American trading hours on Wednesday. Before the FOMC releases the July meeting minutes, the benchmark 10-year US Treasury bond yield is up more than 3% on the day above 2.9%, weighing heavily on XAU/USD.

Gold News

Will the FOMC minutes make or break Bitcoin’s uptrend?

Will the FOMC minutes make or break Bitcoin’s uptrend?

Ahead of the FOMC minutes release Bitcoin withdrawal from exchanges continued. Proponents expect the market to react to signs Fed members will continue with more aggressive interest rate hikes, increasing the pressure on Bitcoin price. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures